Mining Magazine April 2016 | Page 16

FINANCE
IF SHORT-TERM VOLATILITY is your preferred method of investment , gold is the ideal commodity for you right now . Its market activity over the past few months could be enough to make the average investor search for something more predictable . But for the more sophisticated investor , gold ’ s fluctuations are an earmark of potential profit , pushing the price of gold up . Many experts in gold believe that the only question is not whether to invest in gold or not , but simply a question of taking a long or short position .
Pros of investing in gold Many investors consider gold to be a safe asset , as one that goes up in value when people are worried about the economy and imminent inflation . Forbes magazine cited gold as a smart hedge against a collapse if something unpredictable happens to the market as a whole .
Yet the market has increased more than 2,000 points since the second week in February , and despite unrest in other parts of the world , the U . S . stock exchange seems insistent on remaining stable . Even with the market leveling out the past few months , gold has gone up 15 percent so far in 2016 , a figure much higher than the market overall .
What is keeping gold on the front burner ? Investors watching what the Federal Reserve is doing . Industry experts predict that interest rates will be pushed up , perhaps sooner rather than later , but they cannot predict what those consequences will be . Negative interest rates attempted in parts of Europe and Japan have caused odd chain reactions , so a
16 April 2016